Platinum Group Debt
| PLG Stock | USD 1.28 0.03 2.40% |
Platinum Group Metals holds a debt-to-equity ratio of 0.001. At this time, Platinum Group's Debt To Equity is most likely to increase slightly in the upcoming years. The Platinum Group's current Debt Equity Ratio is estimated to increase to 0.01, while Short and Long Term Debt Total is projected to decrease to roughly 224.9 K. . Platinum Group's financial risk is the risk to Platinum Group stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Platinum Group's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Platinum Group's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Platinum Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Platinum Group's stakeholders.
For most companies, including Platinum Group, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Platinum Group Metals, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Platinum Group's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Platinum Group's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Platinum Group is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Platinum Group to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Platinum Group is said to be less leveraged. If creditors hold a majority of Platinum Group's assets, the Company is said to be highly leveraged.
The current Total Current Liabilities is estimated to decrease to about 988.7 K. The current Liabilities And Stockholders Equity is estimated to decrease to about 56.9 MPlatinum |
Platinum Group Bond Ratings
Platinum Group Metals financial ratings play a critical role in determining how much Platinum Group have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Platinum Group's borrowing costs.| Piotroski F Score | 3 | Frail | View |
| Beneish M Score | (4.32) | Unlikely Manipulator | View |
Platinum Group Metals Debt to Cash Allocation
Many companies such as Platinum Group, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Platinum Group Metals has 263 K in debt with debt to equity (D/E) ratio of 0.0, which may show that the company is not taking advantage of profits from borrowing. Platinum Group Metals has a current ratio of 18.25, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Platinum to invest in growth at high rates of return. Platinum Group Total Assets Over Time
Platinum Group Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Platinum Group uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Platinum Group Debt Ratio | 0.43 |
Platinum Group Corporate Bonds Issued
Most Platinum bonds can be classified according to their maturity, which is the date when Platinum Group Metals has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Platinum Net Debt
Net Debt |
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Understaning Platinum Group Use of Financial Leverage
Platinum Group's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Platinum Group's total debt position, including all outstanding debt obligations, and compares it with Platinum Group's equity. Financial leverage can amplify the potential profits to Platinum Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Platinum Group is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | -4 M | -4.2 M | |
| Short and Long Term Debt | 32 M | 33.6 M | |
| Short and Long Term Debt Total | 236.7 K | 224.9 K | |
| Long Term Debt Total | 39.6 K | 37.6 K | |
| Net Debt To EBITDA | 1.32 | 2.32 | |
| Debt To Equity | 0.01 | 0.01 | |
| Long Term Debt To Capitalization | 2.02 | 1.22 | |
| Total Debt To Capitalization | 0.01 | 0.01 | |
| Debt Equity Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (8.32) | (8.74) |
Currently Active Assets on Macroaxis
When determining whether Platinum Group Metals is a strong investment it is important to analyze Platinum Group's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Platinum Group's future performance. For an informed investment choice regarding Platinum Stock, refer to the following important reports:Check out the analysis of Platinum Group Fundamentals Over Time. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Precious Metals & Minerals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Platinum Group. If investors know Platinum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Platinum Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Platinum Group Metals is measured differently than its book value, which is the value of Platinum that is recorded on the company's balance sheet. Investors also form their own opinion of Platinum Group's value that differs from its market value or its book value, called intrinsic value, which is Platinum Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Platinum Group's market value can be influenced by many factors that don't directly affect Platinum Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Platinum Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Platinum Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Platinum Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.